Thursday, November 4, 2010

Industry's Circulation Decline Slows, but Dive Below the Top Line to Really Understand

NEW YORK (AdAge.com) -- Newspapers' circulation losses have slowed further, to a 5% daily drop in the most recent report from an 8.7% decline in the spring report and a 10.6% plunge in the report one year ago.

The Wall Street Journal reported a 1.82% increase in average paid circulation on weekdays over the six months ending in September, compared to the period a year earlier.

Newspapers' crucial paid circulation on Sundays fell 4.5% over the six months ending in September, compared with the equivalent period a year earlier, the Audit Bureau of Circulations said today as it issued its biannual circulation report. That's an improvement, too, over the 6.5% decline in the spring report and the 7.5% drop before that. The big national papers reported divergent results. The largest, The Wall Street Journal has been tacking toward a greater emphasis on general news with innovations such as the Greater New York section it introduced last spring. It reported a 1.82% increase on weekdays over the six months ending in September, compared to the period a year earlier, to reach 2.06 million. USA Today, the second largest on weekdays, saw average paid circulation slip 3.7% to 1.83 million. The New York Times, the third largest, declined 5.5% on weekdays to 876,638.

Looking a little below the top line, however, can be critical to understanding what's going on with these newspapers. Whatever you make of the distinction between print circulation and digital circulation, electronic editions -- meaning WSJ.com-only subs, iPad and mobile subscriptions and e-reader circulation -- are playing a big role in The Journal's numbers. Those reached an average of 449,139, up 10.4% from the period a year earlier. Without those electronic editions, the paper's paid print circulation on weekdays was essentially unchanged from last fall.

USA Today noted Monday morning that it is the largest paper in the country in paid print circulation.

But over at USA Today, you also have to decide what to make of the distinction between circulation paid for by individuals and circulation distributed free to airline passengers, say, or hotel guests. USA Today's individually paid circulation declined 9.3% to 692,901.

Echoing explanations you'd hear from many papers around the country, The Times said its circulation decline partly reflected a strategy of reducing its least profitable circulation while emphasizing the most loyal readers.

The industry is working to focus on expanding its audience and building revenue across platforms including print, said John F. Sturm, president and CEO of the Newspaper Association of America, in a statement Monday morning. "What counts is that newspaper companies continue to retain their most loyal and engaged readers even as they increase print circulation pricing to rebalance their revenue streams," he said. "Many publishers have enhanced coverage to advertisers with popular print products that supplement traditional newspaper distribution. Targeted products -- such as Briefing in Dallas, RedEye in Chicago, Your Essential Shopper in Phoenix and scores of local publications -- provide additional readership that is not currently reported by ABC." Update: The Audit Bureau of Circulations points out that it does indeed audit and report audience metrics for the publications cited in Mr. Sturm's quote.

Average Daily Circulation at the Top 25 U.S. Daily Newspapers

Preliminary Figures as Filed with the Audit Bureau of Circulations
(Subject to Audit)

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